Shell Expands Global LNG Reach with Strategic Acquisition of Pavilion Energy

Shell Expands Global LNG Reach with Strategic Acquisition of Pavilion Energy

(IN BRIEF) Shell Eastern Trading Pte. Ltd. has completed its acquisition of Pavilion Energy Pte. Ltd., a Singapore-headquartered company with a global LNG trading portfolio of approximately 6.5 mtpa. The deal, which includes LNG supply contracts, regasification capacity, and bunkering operations, supports Shell’s goal to increase LNG sales by 4-5% per year until 2030. The integration of Pavilion Energy’s assets into Shell’s global LNG network will start immediately. Notably, Pavilion’s pipeline gas business in Singapore and its 20% interest in Tanzanian blocks were excluded from the transaction.

(PRESS RELEASE) LONDON, 2-Apr-2025 — /EuropaWire/ — Shell Eastern Trading Pte. Ltd., a subsidiary of Shell plc, has finalized its acquisition of 100% of the shares in Pavilion Energy Pte. Ltd. Pavilion Energy, based in Singapore, runs a global LNG trading business with a contracted supply volume of roughly 6.5 million tonnes per annum. The deal includes Pavilion Energy’s extensive portfolio of LNG offtake and supply agreements, regasification capacity, and its LNG bunkering operations, thereby reinforcing Shell’s standing in the LNG market.

This acquisition will be integrated within Shell’s cash capital expenditure framework and supports the company’s objective to boost its LNG sales by 4-5% annually through 2030. The process of merging Pavilion Energy’s assets into Shell’s worldwide LNG portfolio will begin immediately.

On June 18, 2024, Shell announced that it had signed an agreement to acquire Pavilion Energy from Carne Investments Pte. Ltd., an indirect wholly-owned subsidiary of Temasek. Pavilion Energy’s portfolio includes long-term LNG sale and supply contracts of approximately 6.5 mtpa, as well as about 2 mtpa of long-term regasification capacity at the Isle Grain LNG terminal in the United Kingdom, with additional regasification access in Singapore and Spain. It also comprises the time-charter of three MEGI LNG vessels and two TFDE vessels, along with an LNG bunkering business that saw its first vessel deployed in early 2024. Notably, Pavilion Energy’s pipeline gas business in Singapore has been excluded from this transaction and transferred to Gas Supply Pte Ltd (GSPL), a wholly-owned subsidiary of Temasek, and its 20% interest in blocks 1 and 4 in Tanzania was not part of the deal.

Shell, via its BG acquisition, holds the first LNG importing license in Singapore, supplying nearly 25% of the country’s natural gas needs. For more than a decade, Shell has consistently delivered LNG to Singapore and other Asian markets, trading in LNG, crude, oil products, and other energy commodities, thereby contributing to the region’s energy supply security. Additionally, Shell is a pioneer in using LNG as a marine fuel for bunkering in Singapore.

Notes to editors

• On June 18, 2024, Shell announced the signing of an agreement to acquire Pavilion Energy from Carne Investments Pte. Ltd., an indirect wholly-owned subsidiary of Temasek:
  • Pavilion Energy’s portfolio comprises about 6.5 mtpa of long-term sale and supply LNG contracts. It also includes long-term regasification capacity of approximately 2 mtpa at the Isle Grain LNG terminal (United Kingdom), regasification access in Singapore and Spain, as well as the time-charter of three M-type, Electronically Controlled Gas Injection (MEGI) LNG vessels and two Tri-Fuel Diesel Electric (TFDE) vessels. It also has an LNG bunkering business with its first vessel deployed in early 2024.
  • Pavilion Energy’s pipeline gas business in Singapore was not included as part of the transaction and has been transferred to Gas Supply Pte Ltd (GSPL), a wholly-owned subsidiary of Temasek.
  • Pavilion Energy’s 20% interest in blocks 1 and 4 in Tanzania are not included in the transaction.
• Shell, via its BG acquisition, holds the first LNG importing license to Singapore, supplying nearly a quarter of the country’s natural gas needs. For more than 10 years, Shell has delivered LNG to Singapore and other markets in Asia reliably and competitively, trading in LNG, Crude, Oil products and other energy commodities to serve customers across Asia, actively contributing to the region’s energy supply security. Shell is a pioneer in developing LNG as a marine fuel for bunkering in Singapore.

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Forward-Looking non-GAAP measures

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SOURCE: SHELL